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Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-3.01 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -3.01 suggests that the company is not a manipulator.

PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.63   Max: -0.61
Current: -3.01

-3.63
-0.61

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -0.61. The lowest was -3.63. And the median was -2.42.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.921+0.528 * 1.2339+0.404 * 0.8276+0.892 * 0.9773+0.115 * 0.9042
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8614+4.679 * -0.0585-0.327 * 1.7086
=-3.01

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,621 Mil.
Revenue was 1899.272 + 1939.438 + 1872.34 + 1886.956 = $7,598 Mil.
Gross Profit was 223.039 + 235.215 + 227.505 + 252.661 = $938 Mil.
Total Current Assets was $2,278 Mil.
Total Assets was $5,214 Mil.
Property, Plant and Equipment(Net PPE) was $1,102 Mil.
Depreciation, Depletion and Amortization(DDA) was $203 Mil.
Selling, General & Admin. Expense(SGA) was $598 Mil.
Total Current Liabilities was $1,204 Mil.
Long-Term Debt was $475 Mil.
Net Income was -5.074 + 216.388 + 46.109 + 53.484 = $311 Mil.
Non Operating Income was -0.567 + -1.07 + -0.448 + -0.212 = $-2 Mil.
Cash Flow from Operations was 201.191 + 110.209 + 117.556 + 189.227 = $618 Mil.
Accounts Receivable was $1,801 Mil.
Revenue was 2027.614 + 2145.958 + 1838.209 + 1762.574 = $7,774 Mil.
Gross Profit was 311.628 + 336.903 + 264.209 + 272.071 = $1,185 Mil.
Total Current Assets was $2,496 Mil.
Total Assets was $6,254 Mil.
Property, Plant and Equipment(Net PPE) was $1,100 Mil.
Depreciation, Depletion and Amortization(DDA) was $180 Mil.
Selling, General & Admin. Expense(SGA) was $710 Mil.
Total Current Liabilities was $1,106 Mil.
Long-Term Debt was $72 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1621.133 / 7598.006) / (1801.11 / 7774.355)
=0.21336295 / 0.23167324
=0.921

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(235.215 / 7774.355) / (223.039 / 7598.006)
=0.15239991 / 0.12350872
=1.2339

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2277.519 + 1101.959) / 5213.543) / (1 - (2495.704 + 1099.574) / 6253.583)
=0.3517886 / 0.42508511
=0.8276

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7598.006 / 7774.355
=0.9773

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(179.793 / (179.793 + 1099.574)) / (202.782 / (202.782 + 1101.959))
=0.14053278 / 0.15541935
=0.9042

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(597.638 / 7598.006) / (709.919 / 7774.355)
=0.07865722 / 0.09131549
=0.8614

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((475.364 + 1203.744) / 5213.543) / ((72.489 + 1106.311) / 6253.583)
=0.32206659 / 0.18849994
=1.7086

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(310.907 - -2.297 - 618.183) / 5213.543
=-0.0585

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -3.01 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08941.06170.77640.9860.93991.06491.08060.98351.03980.9332
GMI 0.93290.91810.96120.9391.10831.20240.84740.97891.02991.288
AQI 0.80662.01840.94380.94431.04110.99950.86741.06611.08280.8276
SGI 1.15681.24641.42330.87781.18481.17621.28041.10181.20370.9645
DEPI 1.01181.33160.83411.18470.91981.03681.02561.11010.78820.986
SGAI 0.84871.05450.90391.15040.91770.93350.91071.04561.19730.8513
LVGI 1.00220.58280.60650.93690.76261.4421.03121.05091.04651.7086
TATA -0.0642-0.0244-0.0214-0.0523-0.0186-0.01810.0386-0.027-0.002-0.0585
M-score -2.65-1.78-2.33-2.89-2.30-2.37-2.10-2.53-2.30-2.97

Quanta Services Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.83191.00061.09691.11681.11741.03220.91230.89670.87560.921
GMI 0.91311.0291.03441.08271.09661.011.05011.05511.11791.2339
AQI 1.02231.06611.09241.08340.92241.08280.92071.09940.94830.8276
SGI 1.19671.0831.06661.10961.16851.21251.19891.1411.03670.9773
DEPI 1.03471.22461.19041.16421.1460.76250.95460.72410.69270.9042
SGAI 1.03741.02991.13381.08881.14041.2071.05171.09610.99250.8614
LVGI 0.87851.05091.05221.06551.10751.04651.19131.38271.61621.7086
TATA -0.0084-0.01390.0010.01730.01950.0081-0.0325-0.0522-0.0451-0.0585
M-score -2.50-2.42-2.29-2.13-2.15-2.26-2.62-2.80-2.97-3.01
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